The Appropriations Law Answer Book

Chapter 5

Obligation of Appropriations

When people first come to the federal government as employees, they normally have a difficult time understanding, let alone accepting, the way the government controls its spending. Unlike the private sector or state and local governments that keep track of assets, liabilities, and net worth (or net position in the government setting), the federal government uses a separate set of accounts for budgetary control. These accounts track and control the use of budgetary authority, as well as the status of that authority, mostly by tracking and controlling obligations. The concept of obligation control is central ...